The agency has given notice of designation of a longer period for Commission action on FINRA’s proposal to adopt Rule 6898. The proposed rule change was published for comment in the Federal Register on 6 July 2017. The commission received no comment letters on the proposed rule change.1

Business Processes Impacted: Business Continuity Management The agency, with the concurrence of the Office of Government Ethics, is issuing a final rule amending the Supplemental Standards of Ethical Conduct for Employees of the Bureau of Consumer Financial Protection. This final rule is effective 1 September 2017.2

Business Processes Impacted: Lending & Investment The agency is modifying the Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z. The final rule is effective 10 October 2017.3

Business Processes Impacted: Capital Adequacy & Capital Planning The agency has published guiding principles on the cases where rejection of consumer’s claim is unreasonable (covering contracts entered into or variations agreed to prior to 1 August 2017).4

Business Processes Impacted: Reporting The agency has adopted corrigendum to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for Packaged Retail and Insurance-based Investment Products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents.6

Business Processes Impacted: Data Privacy & Data Quality ManagementThe agency has announced the implementation of Regulation (EU) 2017/1469 which relates to laying down a standardized presentation format for the Insurance Product Information Document, effective 11 August 2017.7

Business Processes Impacted: Risk Management & Stress Testing The agency has published the Prudential Practice Guide CPG 220 Risk Management which sets out the requirements relating to the risk management framework of an APRA regulated institution.8

Insurance Europe (IE):Comments provided to IAIS on Revisions to ICP 13Publication Date: August 01st 2017Risks Covered: Conduct Risk, Operational RiskBusiness Processes Impacted: Risk Management & Stress Testing The agency has provided its response to a consultation by the International Association of Insurance Supervisors (IAIS) on revisions to Insurance Core Principle (ICP) 13 regarding reinsurance and other forms of risk transfer.9

Monetary Authority of Singapore (MAS):MAS’ Approach to Resolution of Financial Institutions in SingaporePublication Date: August 23rd 2017Risks Covered: Compliance RiskBusiness Processes Impacted: Risk Management & Stress Testing The agency has issued a monograph on “MAS’ Approach to Resolution of Financial Institutions in Singapore” which sets out the approach for operationalizing the enhanced resolution framework in the MAS (Amendment) Act 2017. The monograph includes MAS’ crisis management framework as a continuum and the resolution; objectives of resolution; MAS’ resolution regime and its role as a resolution authority; purpose of recovery and resolution planning; MAS’ resolution toolkit; MAS’ approach towards financial market infrastructures; MAS’ resolution funding, MAS’ creditor compensation; as well as MAS’ stance towards cross-border cooperation.11

Board of Governors of the Federal Reserve System (The Fed):Large Financial Institution Rating System; Regulations K and LLPublication Date: August 17th 2017Risks Covered: Liquidity RiskBusiness Processes Impacted: Audit, Legal and Compliance The Board is seeking comment on a proposed new rating system for its supervision of large financial institutions. The proposed ‘‘Large Financial Institution Rating System’’ is closely aligned with the Federal Reserve’s new supervisory program for large financial institutions.12

Consumer Financial Protection Bureau (CFPB):Home Mortgage Disclosure Act (Regulation C)Publication Date: August 24th 2017Risks Covered: Market RiskBusiness Processes Impacted: Reporting The agency is amending Regulation C to implement amendments to the Home Mortgage Disclosure Act made by section 1094 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Consistent with section 1094 of the Dodd-Frank Act, the Bureau is adding several new reporting requirements and clarifying several existing requirements. The Bureau is also modifying the institutional and transactional coverage of Regulation C. The final rule also provides extensive guidance regarding compliance with both the existing and new requirements.13

European Insurance and Occupational Pensions Authority (EIOPA):European Supervisory Authorities publish Q&A on the Key Information Document for PRIIPsPublication Date: August 18th 2017Risks Covered: Operational RiskBusiness Processes Impacted: Reporting The agency has issued guidance in the form of questions and answers (Q&A) on the Packaged Retail and Insurance-based Investment Products’ Key Information Document (KID) requirements. The Q&As are supplementary to those issued by EIOPA on 4 July 2017, and are designed to harmonize KID supervision across the EU.16

European Systemic Risk Board (ESRB):Recovery and resolution for the EU insurance sector: A macro-prudential perspectivePublication Date: August 17th 2017Risks Covered: Conduct RiskBusiness Processes Impacted: Audit, Legal & Compliance This report focuses on a recovery and resolution (RR) framework for insurers from a macro-prudential perspective. Covering primary insurers and reinsurers, the report: (i) discusses the need for comprehensive RR policies to complement supervisory and macro-prudential policies; (ii) identifies and describes a number of potential RR tools; (iii) highlights funding aspects of the resolution process; and (iv) considers cross-sectoral and cross-border implications and contagion channels that arise when resolution tools are applied.19

International Association of Insurance Supervisors (IAIS):Aggregate Report on the Self-Assessment and Peer Review of ICPs 13 and 24 Now Available Publication Date: August 03rd 2017Risks Covered: Conduct RiskBusiness Processes Impacted: Data Privacy & Data Quality Management, Reporting The agency has released an aggregate report of a thematic Self-assessment and Peer Review on Reinsurance, and Macro-prudential Surveillance and Insurance Supervision (ICPs 13 and 24) . The report contains the assessment results and analysis of the expert team’s findings.20

FORTHCOMING REGULATIONS:

Securities and Exchange Commission (SEC)Proposed Update to the IFRS Taxonomy 2017 The SEC has announced that proposed Update 1 to the IFRS Taxonomy 2017 has been published for public comment by the International Accounting Standards Board (IASB). The public comment period will end on 18 September 2017.21

Financial Conduct Authority (FCA)Our supervisory approach to PPI The agency announced the launching of a campaign to inform people about the 29 August 2019 deadline to complain about payment protection insurance (PPI), which will complement the regulatory and supervisory work done around PPI by the FCA. This campaign is being funded by 18 firms, including banks and other providers, that have been requested to make some improvements to the way people can complain to them about PPI.25

Securities and Exchange Commission (SEC)Regulatory Flexibility Agenda The agency is publishing the Chairman’s agenda of rulemaking actions pursuant to the Regulatory Flexibility Act (RFA) (Pub. L. 96–354, 94 Stat. 1164) (Sep. 19, 1980). The items listed in the Regulatory Flexibility Agenda for Spring 2017 reflect only the priorities of the Acting Chairman of the U.S. Securities and Exchange Commission, and do not necessarily reflect the view and priorities of any individual Commissioner.26

The “Regulatory Reform” newsletter is the monthly initiative aimed at updating the Finance & Risk community with the most recent regulatory changes impacting Banking, Capital Markets & Insurance firms. We track more than 70 regulatory and industry bodies covering North America, Europe and Asia-Pacific. Every month, we will highlight approximately 20 regulations shortlisted on the basis of geography of coverage and anticipated business impacts. Our summaries will highlight the risks covered and business processes affected by the regulatory reforms.

Disclaimer

This blog is intended for general informational purposes only, does not take into account the reader’s specific circumstances, may not reflect the most current developments, and is not intended to provide advice on specific circumstances. Accenture disclaims, to the fullest extent permitted by applicable law, all liability for the accuracy and completeness of the information in this blog and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professional.

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Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by Accenture as general information on the subject. It is not intended to provide advice on your specific circumstances.

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